TEHRAN (Iran News) – 7 Countries Account for 90% of Iran Foreign Trade. Head of Joint Iran-China Chamber of Commerce says Iran’s economy today is at the “most dangerous historical point of inflation in the last four decades” and there is a possibility of a “hyperinflation” and a sharp rise in price of commodities.
Majid Reza Hariri speaking to ILNA said that Iran’s economy is at the “most dangerous historical point of inflation in the last four decades” and there is a possibility of a “hyperinflation” and a sharp rise price of commodities.
He said, “We go through 50 or 60 percent inflation stages, inflation control will become difficult and that any decision is made in the country, we must first assess the consequences in order to increase or decrease the inflation rate.”
The Statistical Center published a new report on inflation in early November, saying that the increase in the price of foods and beverages in the country during the 12 months ending in October this year was 61.4 percent compared to the same period last year (annual inflation), which is a new record in the inflation of food items.
Hariri then pointed to the prerequisites for economic growth of the country in the current condition and impacts of political talks, and said major part of the current national economy that, according to all experts, is not in good conditions, is the impact of diplomatic and political relation. He added that the country’s political war with the U.S. has extended to the economic scene and definitely any action and reaction will be effective in the future economic condition of the country.
He said Iran’s economy is addicted to oil sales and it is not able suddenly to cut this dependence, and two announced policies by the officials should move ahead shoulder by shoulder. He said one of the policies is efforts to remove sanctions which are followed by the political talks and all bodies should try to resolve the problems through talks. He added that the second policy is to try to minimize the impacts of sanctions on the country’s trade despite sanctions and it can be materialized through bilateral trade especially with the neighboring countries and convincing them for bilateral and preferential agreements.
Hariri noted that we should consider this point that 90 percent of Iran’s foreign trade is with only 7 countries and therefore it should try to have a diversified market and several partners.
He added that inflation and sanctions are two essential issues in the current condition of the national economy and the country should work to nullify them with any method possible.
He noted that the government should take advantage of experiences and views of economic experts to overcome this problem and warned that if the inflation is not controlled now, its curb will be difficult in the future.
In recent months, several warnings have been issued about the rise of hyperinflation in the country. Later in July, Massoud Khansari, Head of the Tehran Chamber of Commerce, tweeted that as the current trend continues, “in the coming months the government will face inflation that has never been experienced in the country.”
